233 - COVID Era Commercial Real Estate with Michael Brown

What the real deal with commercial real estate in this COVID era?
Michael Brown, the founder of Red Fox Capital and Red Fox Wealth,
is a commercial real estate investor and developer who’s on the
show to give us the inside scoop. Listen in to hear Michael’s
predictions about the future of commercial real estate, how he
learned the secrets about investing (then published them!), and
how Amazon and data centers are impacting industrial space.
Michael has a free gift for all you listeners, so be sure to tune
in and hear how to claim it! 


Please subscribe to this podcast in iTunes or in the Podcasts App
on your phone, and never miss a beat from Leigh by visiting
https://leighbrown.com. If you’re tired of doing real estate
alone, enroll in  Leigh Brown University and be sure to use
your special “CSIRE” discount code at checkout for $10 off your
subscription.


Time Stamped Show Notes:


00:50 - Introducing Michael, the founder of Red Fox Capital
and Red Fox Wealth

01:05 - They are a commercial real estate investment and
development company as well as a full-service wealth
management company

02:15 - He learned the inside by working at Merrill Lynch
for a couple of years; he couldn’t talk about real estate
because it wasn’t a product

03:35 - REITs (Real Estate Investment Trust) operate like
stocks, they fluctuate with the stock market

04:15 - He wrote a book called The Real Perspective:
Secret Investments Your Financial Advisor Won’t Tell You
About and published it 

04:30 - They now talk to clients about private
investments and created integrated portfolio management to
control private investments that they can offer clients



05:45 - Commercial real estate

06:55 - The things that Amazon can’t control are going to
be good for commercial real estate investing; dry cleaners,
nail salons, etc. 

07:20 - He’s also looking at Dollar General stores; they
keep cost and prices in line with cheap building costs and
prefabricated solutions

09:00 - Predictions for business districts: D.C. is
protected because of government money but NYC is losing
tenants every day

10:10 - There might need to be tax incentives to get
people back into cities; there are also mixed-use solutions
that are possible



11:30 - Opportunity zones: Tax incentives in areas that have
been challenged

12:15 - They have not fully engaged in opportunity
zones 



14:05 - Michael’s CSIRE story

14:20 - He got into heavy industrial real estate; he
drove into an ugly area, got a new listing, and never thought
he’d sell it

15:15 - They sold it to an investment group and that
group made another $2 Million; he never knew the opportunity
was there

16:30 - He started working the industrial market and had
a blast; Amazon has taken over and is pushing industrial
users out of their areas

16:55 - Ecommerce is really making an impact on
industrial space; they need space and will go anywhere

17:35 - Data centers are also taking over



18:15 - Michael’s take on the 1031 Tax-Free Exchange

18:30 - We are in the lowest tax bracket this country
will see in a long time

18:50 - There are two options for the country: Stop
spending or raise taxes

19:05 - There’s a short time frame to find another
property and many clients get hasty and make more than a 15%
capital gains tax mistake on the property

19:30 - He wants people to take a step back to make sure
the 1031 is their best option



20:10 - The best way to reach Michael (and get your free copy
of his book!): email him at mikebrown1757@gmail.com

20:45 - Visit his company websites at www.redfoxcapital.co
and www.redfoxwealth.com